True concerning the payback period

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Which of the following is true concerning the payback period?

It is the most effective decision criterion

Although the discounted payback period is more accurate, the payback period is used more often in business

It takes into account all cash flows and time value of money, so it should be considered for a primary decision criteria

Because of its lack of insight into the profitability of a project, companies do not use it

The costs of doing the analysis severely outweighs the benefits.

Reference no: EM131546987

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